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You are looking at a company with the expected performance depicted on the table below. What is the expected rate of return of this company?
You are looking at a company with the expected performance depicted on the table below. What is the expected rate of return of this company?
Economy | Probabilty | Rate of Return if this economy happens |
Weak | 0.3 | -30% |
Normal | 0.45 | 10% |
Strong | 0.25 | 40% |
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